Delinking the registration of housing units from builders’ dues could provide relief to homeowners facing issues with stalled projects, according to Sanjay Bhoosreddy, Chairman of the Uttar Pradesh Real Estate Regulatory Authority (UPRERA). A recent survey commissioned by UPRERA revealed a concerning situation where 45,000 units have been occupied by buyers without registering their ownership, and an additional 125,000 units remain unoccupied and unregistered.
Bhoosreddy’s comments come in response to recommendations put forth by the Amitabh Kant committee, which was established to address the problems surrounding legacy stressed projects. The committee, led by Kant and appointed by the Union Housing Ministry, suggests that the registration of housing units should not be contingent upon the recovery of builders’ outstanding dues.
This recommendation has already found practical application in several housing boards across the state. However, Bhoosreddy acknowledges that implementing such a change would likely require authorities to accept a financial “haircut.” The exact financial implications would need to be carefully evaluated and worked out.
During discussions with the Kant committee, UPRERA offered insights into reviving stalled projects and resolving homebuyer issues, with some of these recommendations now incorporated into the committee’s report.
The issue of unpaid dues by developers to Noida and Greater Noida authorities, amounting to nearly Rs 39,000 crore, has led to a halt in the registry of housing units and the issuance of occupancy certificates for projects with outstanding dues.
Sanjay Bhoosreddy, who took office as UPRERA Chairman on August 12, has stated that his primary focus during his tenure will be addressing the concerns of homebuyers and ensuring strict compliance with RERA (Real Estate Regulatory Authority) guidelines.
A retired IAS officer from the 1989 batch, Bhoosreddy has a wealth of experience in various roles within the Uttar Pradesh government, including serving with the Uttar Pradesh Housing Board, holding the position of Additional Chief Secretary-Sugar Industry, and acting as the Investment Commissioner for the state.
Former UPRERA Chairman Rajive Kumar, who also participated in the committee’s deliberations, has suggested that the state government should consider delinking penalties against developers for unpaid dues and allow the registration of more than 45,000 completed housing units.
The fate of these recommendations now rests with the state government, which will review the Kant panel’s report. Bhoosreddy noted that RERA is a key stakeholder in this process, and the authorities will adhere to the government’s guidelines regarding stalled projects and builders’ dues.
The Kant committee, formed in March of this year by the Ministry of Housing and Urban Affairs (MoHUA), has proposed a seven-point plan to address the issues of legacy stressed projects. These recommendations include mandatory RERA registration for projects, execution of registrations or sub-lease deeds for occupied units, occupancy of substantially completed projects, and financing for stalled projects through a government-backed fund.
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